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Mar 31, 2024

SoFi Q1 2024 Earnings Report

SoFi's Q1 2024 was marked by strong revenue growth, GAAP profitability, and increased member base.

Key Takeaways

SoFi Technologies reported a strong start to 2024 with significant momentum in revenue growth and diversification towards Financial Services and Tech Platform segments. The company achieved GAAP net income of $88 million and adjusted net revenue of $581 million, representing 26% year-over-year growth. Management raised FY24 guidance based on the strong Q1 performance.

Total net revenue increased by 37% year-over-year to $645 million.

Achieved net income of $88 million, marking the second consecutive quarter of GAAP profitability.

Adjusted net revenue grew 26% year-over-year to $581 million.

Total deposits grew by a record of $3.0 billion, up 16% during the first quarter to $21.6 billion at quarter-end.

Total Revenue
$581M
Previous year: $460M
+26.2%
EPS
$0.02
Previous year: -$0.05
-140.0%
Total Members
8.13M
Previous year: 5.7M
+42.7%
Technology Platform Accounts
151.05M
Previous year: 126.33M
+19.6%
Gross Profit
$638M
Previous year: $464M
+37.5%
Cash and Equivalents
$4.15B
Previous year: $2.49B
+66.7%
Total Assets
$31.3B
Previous year: $22.5B
+39.4%

SoFi

SoFi

SoFi Revenue by Segment

Forward Guidance

SoFi provided guidance for full year 2024, expecting adjusted net revenue of $2.39 to $2.43 billion and adjusted EBITDA of $590 to $600 million. They also expect GAAP net income of $165 to $175 million and GAAP EPS of $0.08 to $0.09.

Positive Outlook

  • Adjusted net revenue of $2.39 to $2.43 billion
  • Adjusted EBITDA of $590 to $600 million
  • GAAP net income of $165 to $175 million
  • GAAP EPS of $0.08 to $0.09
  • Growth in tangible book value of approximately $800 million to $1 billion

Challenges Ahead

  • Lending revenue will be 92% to 95% of 2023 levels
  • Tech Platform will grow approximately 20% year over year
  • Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures
  • The company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations
  • Management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures

Revenue & Expenses

Visualization of income flow from segment revenue to net income